Nepal Oil Corporation (NOC) has been in the red for the last two months after being barred from fully implementing the auto pricing system. The mechanism, which fixes fuel prices as per global trends, had allowed the perennially loss-making government company to roll in profits from the last three years.
According to NOC, its projected losses for December have crossed Rs1 billion because the government has not permitted it to hike prices despite a sharp rise in the international market.
The state-owned oil monopoly said its sole supplier Indian Oil Corporation (IOC) had raised fuel prices recently. “Considering the revised price list sent by IOC on December 1, NOC will be losing Rs1.08 billion per month,” said NOC Spokesperson Birendra Kumar Goit. “Prices of almost all fuels sent by IOC have gone up significantly,” he said.
IOC sends a revised tariff every fortnight while the price of cooking gas is revised every month based on the international market price. IOC has cited soaring global fuel prices for raising its prices, Goit said. Read More…